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Quota restrictions and intra-firm reallocations: Evidence from Chinese exports to the US

Richard Upward () and Zheng Wang ()

Economics Letters, 2016, vol. 144, issue C, 71-74

Abstract: We study how Chinese textile and clothing firms adjusted the product structure of their exports to the US, as triggered by the termination of Multifiber Arrangement (MFA) quotas. We find that the removal of MFA quotas induced firms to expand their product scope while reducing the concentration on their core product. These effects are strong for domestic and foreign privately-owned firms, but insignificant for state-owned firms.

Keywords: Quota; MFA; Textile; Product scope; Product concentration (search for similar items in EconPapers)
JEL-codes: D22 F13 L67 (search for similar items in EconPapers)
Date: 2016
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